Sun, 11 Jun 2023

Mumbai (Maharashtra) [India], March 28 (ANI): Reliance Jio has launched new affordable fixed broadband plans to accelerate user acquisition and market expansion. According to a Morgan Stanley report, Jio's initiative to launch lower-priced broadband plans aims to lower the barriers for broadband adoption in India, increasing the penetration ratio of subscribers to home passes and improving network utilization. The new JioFiber plan starts at just Rs198/month, offering unlimited data at 10Mbps speed and unlimited landline voice calls for a month. The offer comes with a rider of bandwidth-on-demand, where users can boost speed for 1/2/7 days to 30Mbps or 100Mbps at nominal payment of Rs21 to Rs152. In addition, subscribers can pay Rs100/month more for access to 6 OTT apps and 400 live TV channels, or Rs200/month additionally for 14 OTT apps and 550 live TV channels. Another report by ICICI Securities suggests that Jio's aggressive move is likely to disrupt the pay TV market, which could fail to match the attractive proposition from Jio. This will help Jio accelerate its user base for FTTH services and content bundling, opening new revenue opportunities. Bharti Airtel, whose broadband business contributed 4 per cent of India revenues and EBITDA in FY22, may face disruption from Jio's new FTTH plan. However, it is not expected to have a significant impact on its FTTH business. BofA Securities report highlights Jio's intention to poach competitor fixed broadband users by launching a new "broadband back-up plan" offer. This move is expected to have a negative impact on both Bharti Airtel and Reliance Industries initially, likely leading to consolidation in the space. J.P.Morgan analysts believe that Jio's disruptive fiber plans, launched just before the Indian Premier League 2023 (IPL), signal increased price aggression focused on acquisition and TAM expansion for its fiber business with a focus on premium subscribers. JM Financials report emphasizes JioFiber's aim to expand the market with its low-cost 10mbps plan, given fiber penetration in India is still only around 10 per cent of households. By improving the affordability of JioFiber, the company seeks to expand its broadband subscriber base into unconnected homes and those with slower or older DSL connections. As the competition intensifies, it remains to be seen how the market will respond to Jio's new affordable broadband plans and their potential impact on other industry players. This story is provided by Reliance Jio. ANI will not be responsible in any way for the content of this article. (ANI)

More Mumbai News

Access More

Sign up for Mumbai News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!